‘Government envisions to make affordable power available round the clock’

‘Government envisions to make affordable power available round the clock’

The performance of Corporation (REC) and Power Finance Corporation () Limited was reviewed by the Union Power Ministry on October 4 and 5, stated the press release from the ministry.

Union Minister of Power and New and Renewable Energy RK Singh said that the Government envisions to make affordable power available for all round the clock.

He emphasized that there is a need to ‘improve competitiveness’ of both the bodies with a view to increase their market share.

He suggested that both the institutions should be ‘nimble-footed’ and adjust to the changing market requirements, increasing renewables and to attempt to reduce their cost of funds.

He also advised PFC and REC to try out better and cheaper alternatives of raising funds, considering offshore sources.

He demanded that the PFC and REC carry out a strategic analysis to adapt to the changed business environment in this sector with an aim to deliver power to consumers at a reasonable price.

He also stressed on the need for speedy resolution for Stressed Assets.

He suggested multiple measures to both the bodies in this respect like ensuring that the stressed assets are resolved at a fair value with a minimal haircut for PFC & REC keeping them in line with the national interests.

He said that the two organizations must establish their physical presence across the country to increase their outreach.

Singh also highlighted that the system of oversight must be tightened by increasing frequency of inspections by company officials and also by hiring expert professionals form the market.

Risk management should be strengthened, he emphasised further.

He raised concerns at the finances of some Distribution Companies while suggesting remedial measures to the two bodies such as establishing presence of their lender nominees in the Board of Directors of DISCOMs of concern.

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